Municipality accused of failing to pay contractors for upgrades at informal settlements

Small business owners contracted to renovate communal toilets and washrooms in Durban’s informal settlements claim they have not been paid by the eThekwini municipality, almost a year after they completed the contract. The toilets and washrooms were constructed using shipping containers about a year ago, by a number of small, medium and micro-sized enterprises contracted by the city.

However, some contractors claim they have been forced to take loans, or even close shop, as they await payment, believed to be up to R300000. One of the contractors, who did not want to be named for fear of being victimised, said they were told that payments were frozen because some contractors had allegedly colluded with municipal staff to overcharge the city.

Payments were pending the outcome of an audit, the contractor said. “We live in KwaMashu and uMlazi. These toilets and washrooms are in the same areas. “When we got the contracts, we wasted no time in ensuring that the work was completed to specification,” the small business owner said. He said that part of the scope of their work included installing new pipes, taps, sinks and repainting the container.

He said once the work was completed, municipal officials inspected it and payment was promised. “The job was inspected and everything was in order. However, with the probe into the alleged corruption, some of us who worked honestly have been hung out to dry. We keep getting told that all payments had to be stopped so that an internal audit could be completed. But that’s not our problem, we did our work and deserve to get paid for it,” he said.

Another contractor, who also asked not to be named, said he was forced to close his business and was unemployed for over three months. He said that until he received payment from the municipality, he could not start his business again as he lacked capital funding. “We have sent emails, visited the offices so many times, but they don’t care about us. They favour the bigger contractors and make sure they are paid first, while we small business owners are living hand to mouth. The municipality can’t even give us a concrete date as to when they will pay us,” said the one contractor.

eThekwini municipal spokesperson, Msawakhe Mayisela said the city followed strict supply chain management processes, “which are necessary to ensure good governance and compliance with all regulated legislative requirements”. “If there are instances where service providers have not been paid, we urge them to direct their queries to the relevant city department so that the matter can be addressed accordingly,” Mayisela said.